C International seeks U.S. approval of $7 million property purchase

By Kali Hays

New York, March 24 - The foreign representative of C International Income Fund, formerly Cinram International Income Fund, Cinram International ULC requested that the company's $7 million proposed Canadian sale order and purchase agreement for a Pennsylvania property be recognized and approved by the U.S. court, according to a Friday motion filed with the U.S. Bankruptcy Court for the District of Delaware.

Cinram expects that the Canadian Court will approve the proposed sale and purchase sale agreement between CMFG LLC and Cinram Property Group, LLC in a hearing scheduled for April 2.

Under the sale agreement, Cinram will purchase 109.92 acres in Pennsylvania for $7 million that includes 1.09 million square feet of industrial buildings.

The agreement also includes a waiver from Signet Leasing and Financial Corp. and WEA Manufacturing transferring all equipment on the property to Cinram free and clear of all liens.

Though the broker of the property, Cushman & Wakefield of Pennsylvania, Inc., did receive a last minute bid from an interested party that was more than Cinram's bid, it included a five-month study period, and the companies agreed that Cinram's bid "is the best in the circumstances" and "the most logical" considering its short 13-day study period and the payment of $600,000 in non-refundable deposits, the filing stated.

Cinram further said "the debtors syndicate of secured lenders, who are the only parties with an economic interest in the proposed sale, are supportive of the proposed sale over the last minute contingent bid" and that "the proposed sale is the best option."

A hearing is scheduled for April 9.

Cinram, a Toronto-based provider of pre-recorded multimedia products and related logistics services, filed for bankruptcy on June 25. Its Chapter 15 case number is 12-11882.

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